Experts agree that 2012 will continue to be a buyer’s market – a buyer with cash, that is.
Sources seem to be optimistic about the real estate market’s affordability in 2012. Lawrence Yun, the National Association of REALTORS’ chief economist, predicts that “very favorable affordability conditions will dominate next year…which will probably be the second best year on record dating back to 1970.” This is welcome news to many buyers, yet it comes with a caveat – buyers may need to have more cash on hand at the time of purchase.
In the 3rd Quarter of 2011, the European Debt Crisis took its toll on consumer confidence in the US, a trend which has continued into the 4th quarter of this year. In response, many lending firms tightened their grasp on their cash reserves, decreasing liquidity in the market. Despite record low interest rates, which the Federal Reserve is committed to maintaining until mid-2013, it has become increasingly difficult for would-be buyers to acquire funds.
Recent developments point to a course correction in Europe which may boost lenders confidence in early 2012, though this opinion is not shared by NAR President Phipps who believes that “mortgage availability remains a real concern since the private market has yet to return.” He acknowledges a rebound in the housing market yet believes that the “that lower loan limits will only further restrict liquidity in mortgage markets.” Yet the ever-emotional market volatility of late may swing the pendulum back into positive numbers spurred on by reports in early 2012 of higher employment and retail profits as a result of the holidays. How long into 2012 that boost will last remains to be seen, yet the overall predictions appear to be rosy.
As unemployment is projected to decline in the new year and the forecast for buyers in the real estate market looks favorable, more prospective buyers will be seeking out realtors to help them in their search for the perfect home. Make sure that buyers in your area can find you. Consider investing a sleek, easy-to-manage website from SM Sold.
The fact of the matter is that internet searches have become the norm for finding new services and a user-unfriendly website can be as detrimental as no web presence at all. If your website is not up to the caliber of the properties you represent, you could be losing clients without realizing it. Review our portfolio to see the difference we’ve made for our past clients. We look forward to your business in 2012.
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